Global private sector activity accelerated in September: PMI

LONDON – Global private sector activity accelerated to a six-month high in September, as a pick up in the services sector offset a continued slowdown by manufacturers, a report showed on Wednesday.

The Global Total Output index, produced by JPMorgan with research and supply management organizations, rose to 52.5 in September from 50.9, comfortably above the 50 mark that divides growth from contraction.

The Global Services index rose to 54.0 last month from 52.0 in August, its highest reading since March.

Data on Monday showed the global manufacturing PMI rose to 48.9 in September from August's 38-month low of 48.1, although it stayed stuck below the 50 mark for a fourth month.

The latest expansion in global output was heavily reliant on the United States, where economic activity rose at the fastest pace since March, JPMorgan said. Britain, Brazil, Russia and Ireland also saw output increase.

In contrast, the euro zone, remained the principal drag.

Earlier data from the euro zone showed a worsening decline for companies last month, denting hopes the economy will return to growth before 2013. In Britain service sector growth slowed and services providers shed jobs for the first time in 10 months.

China's PMI suggested the country's slowdown looked likely to extend into the seventh quarter but the pace of growth in the vast U.S. services sector picked up as new orders accelerated.

The index combines survey data from countries including the United States, Japan, Germany, France, Britain, China and Russia.